CINCINNATI, Ohio – Kroger Co.’s third-quarter net income slipped 2-percent, hurt by a higher inventory accounting charge. But the parent company of Dillon’s performance beat analysts’ expectations and the nation’s largest grocery chain raised its full-year earnings forecast.

Kroger reported its net income slipped to $195.9-million, or 33-cents-per-share, for the quarter. That’s down from $202.2 million, or 32-cents-per-share, a year ago. The results still topped the 31-cents-per-share analysts expected. Revenue increased 10- percent to $20.59 billion, beating Wall Street’s $20.4 billion estimate.

Kroger has been dealing with rising costs. The Cincinnati company has been passing along higher prices to consumers to offset those costs and increased prices for meat and other goods.

Kroger is the parent company of Dillon’s Stores in Kansas.